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Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?
Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?
Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?
Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?
Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?
Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?
Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?
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Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?

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Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox? …

Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?

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  • 1. G Cloud Uk Meetup Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?
  • 2. G-Cloud: The Value-Commodity Paradox? G-Cloud Meet Up, London Ivan Harris, Business Manager - Cloud Services 2nd October 2013
  • 3. IT for public good Commercial in Confidence Copyright Eduserv 2013 All Rights Reserved Value vs. Commodity Co-created Value Solution Offer Component Commoditisation Value G-Cloud Needs • More commodity solutions • Flexibility and freedom • Ready and easy to use • Low cost • Competitive marketplace • 50% cloud-based services / 50% SMEs supply target G-Cloud Strategy • 36%: SME scale and capacity • 29%: Nervous about working with new suppliers • 32%: Difficult to split services into the CloudStore constituents • 24%: Lack of trust and relationships with suppliers Eduserv Civil Servant Survey
  • 4. IT for public good Commercial in Confidence Copyright Eduserv 2013 All Rights Reserved It’s a Matter of Trust! • Purchasers need the trusted advice of expert suppliers to create value- added solutions • Suppliers need to understand the purchaser’s business drivers and requirements • Business trust is built on: – Shared values – Predictability – Success – Mutual benefit • Trust requires relationship building • Agile delivery requires trust • There’s no need to sacrifice value! • A success story… Co-created Value Solution Offer Component Co-created Value Solution Offer Component Plan A Plan B $$$
  • 5. IT for public good Commercial in Confidence Copyright Eduserv 2013 All Rights Reserved CloudStore and SME Spending Trends Lot Mar 2013 Aug 2013 1 (IaaS) 0.6 (3.4%) 1.3 (3.5%) 2 (Paas) 0.3 (1.6%) 0.4 (1.1%) 3 (SaaS) 5.1 (28.0%) 7.8 (20.7%) 4 (Svcs) 12.2 (67.0%) 28.0 (74.7%) Total Value 18.2 37.5 Transactions Mar 2013 Aug 2013 Transactions 909 2080 (+129%) Average Value £20.2K £18K (-11%) Num Customers 159 227 (+43%) Num Suppliers 108 151 (+40%)G-Cloud III May 2013 G-Cloud I Feb 2012 G-Cloud II Oct 2012 G-Cloud 4 Nov 2013? • By 2015, 50% of new central government IT spend to be on cloud-based services and 50% to SMEs • Overall government SME spend has increased from 6.5% in 2009/10 to 10.5% in 2012/13 • £11.3Bn public sector SITS market, £10.4Bn to top 20 providers • 2011/12 to 2012/13 SME spend increase: Direct £4.4Bn to £4.5Bn, Indirect £2.9Bn to £4.0Bn • £11.3M of CloudStore spend in year 1 versus £6.5Bn of Central Government spend (~0.2%) • Data shows exponential growth in CloudStore purchases
  • 6. IT for public good Commercial in Confidence Copyright Eduserv 2013 All Rights Reserved Summary • CloudStore and SME spend are trending in the right direction • Combine the ease of use and cost savings of CloudStore with relationships • Blend large SIs with SMEs for expertise, innovation and cost savings • Continue to advocate large SI/SME coopertition • Find SMEs who can deliver co- created value directly ValueTrustCommodity
  • 7. Thank you! Ivan Harris ivan.harris@eduserv.org.uk (07925) 224284

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